Life insurance is vital if you want concrete financial stability for your dependents, your charitable cause, final expenses, creating inheritances for your heirs, and paying “death taxes” after you have passed away.
The money that is paid out from the policy will go to the beneficiary. The beneficiary can be more than one person, and it can be your estate. However, most people’s beneficiary is their children or martial spouse.
Some people choose to open up a life insurance policy just to build a lump sum of money up to donate to a charity.
Life insurance covers burial and funeral costs, as well as medical bills not covered under health insurance.
Some people use this policy to pay their estate taxes, so that their family doesn’t have to liquidate any property to pay the tax bill.
An inheritance is started by naming your policy after the beneficiary. The money earned on this policy will go to the heir.
Life insurance is important to your dependents, especially if they solely depend on you financially.